Last Thursday the House Finance Committee sponsored — not just presented or hosted, but sponsored — a “lunch and learn” entitled “Fiscal Reality – Exploring Scenarios to Reclaim Budget Solvency.” A video of the presentation is available here.
As the Alaska Dispatch reported after, the presentation focused mostly on options to raise revenue.
New revenues could come from things like income taxes, sales taxes or other taxes, he said. … Teal also showed several options for using the Permanent Fund to close the gap. One option is spending the earnings reserve, which the Legislature can do now legally but not necessarily politically. It could also switch to an endowment-type system called percent of market value ….
Toward the end of the presentation, Rep. Steve Thompson, the House Finance Co-Chair who moderated the presentation (Vice Chair Rep. Dan Saddler is in the picture above next to him) said one reason for the presentation was because he and others were concerned that cutting state spending too deeply could “crash” the economy, and that it was time to start discussing options to avoid that.
But neither Rep. Thompson, Rep. Saddler nor anyone else during the presentation acknowledged that taking money out of the private economy — which both taxes and cutting the Permanent Fund Dividend would do — would simply transfer the pain to private sector participants, and potentially leave Alaskans as a whole far worse off. Continue reading